WA Corporation produces a single product. The cost of producing and selling a single unit of this product at the company'snormal activity level of 40,000 units per month is as follows:Direct Materials..$18.00Direct Labor...Variable Manufacturing OH...Fixed Manufacturing OH.Variable S&A...Fixed S&A..$6.80Q. What is the minimum priceA. $$1.90$5.10$2.40$11.60The normal selling price of the product is $49.1 per unit.(16An order has been received from an overseas customer for 1,000 units to be delivered this month at a special discounted price. Thisorder would not change the total amount of theCompany's fixed costs. The variable selling and administrative expensewould be $0.10 less per unit on this order than on normal sales. Direct labor is a variable cost in this company.Suppose there is not enough idle capacity to produce all the units for the overseas customer and accepting the special order wouldrequire cutting back on production of 100 units for regular customers.Company would charge per unit of this special order?

Cost per unit is defined as the actual cost an entity disburses to create or acquire a single item.…

Answered: W A Corporation produces a single…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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Andretti Company has a single product called a Dak. The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit. The company’s unit costs at this level of activity are given below: Direct materials................................$10.00 Direct labor ...................................4.50 Variable manufacturing overhead................2.30 Fixed manufacturing overhead ..................5.00 ($300,000 total) Variable selling expenses.......................1.20 Fixed selling expenses ......................... 3.50 ($210,000 total) Total cost per unit..............................$26.50 Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 30% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the…
Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.
Suppose that a company manufactures one single product. Annual production capacity is 100 tons. The company manufactured 50 tons and sold 40 tons this vear. Relevant data are as follows: (a) Sales: 40.000.000 $, (b) Direct material costs 14.000.000 $, (c) Direct labor 5.000.000$, (d) Qverhead (variable) 4.500.000 $, (e) Qverhead (fixed) 8.000.000$. Eind the gross profit margin if the company emplovs full absorption costing. And what woQuld be the unit cost of production had the company emploved normal absorption costing?
Title Andretti Company has a single product called a Dak. The company normally produces and sells 60,000.. Description Andretti Company has a single product called a Dak. The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit. The company’s unit costs at this level of activity are given below:</o:p> Direct materials................................$10.00</o:p> Direct labor ...................................4.50</o:p> Variable manufacturing overhead................2.30</o:p> Fixed manufacturing overhead ..................5.00 ($300,000 total)</o:p> Variable selling expenses.......................1.20</o:p> Fixed selling expenses ......................... 3.50 ($210,000 total)</o:p> Total cost per unit..............................$26.50</o:p> </o:p> Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is…
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00Variable manufacturing overhead . . . . . . . . . $1.50Fixed manufacturing overhead . . . . . . . . . . . $5.00Fixed selling expense . . . . . . . . . . . . . . . . . . . $3.50Fixed administrative expense . . . . . . . . . . . . . $2.50Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00Variable administrative expense . . . . . . . . . . $0.50 Required:1. Assume the cost object is units of production:a. What is the total direct manufacturing cost incurred to make 20,000 units?b. What is the total indirect manufacturing…
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Andretti Company has a single product called a Dak. The company normally produces and sells 60,000Daks each year at a selling price of $32 per unit. The company’s unit costs at this level of activity aregiven below:Direct materials ................................... $10.00Direct labor .......................................... 4.50Variable manufacturing overhead ....... 2.30Fixed manufacturing overhead ........... 5.00 ($300,000 total)Variable selling expenses ................... 1.20Fixed selling expenses ........................ 3.50 ($210,000 total)Total cost per unit ............................... $26.50A number of questions relating to the production and sale of Daks follow. Each question is independent.Required:1. Assume that Andretti Company has sufficient capacity to produce 90,000 Daks each year without anyincrease in fixed manufacturing overhead costs. The company could increase its sales by 25% abovethe present 60,000 units each year if it were willing to increase the…
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Delta Company produces a single product. The cost of producing and selling a single unit of this productat the company’s normal activity level of 60,000 units per year is:Direct materials ................................................... $5.10Direct labor .......................................................... $3.80Variable manufacturing overhead ....................... $1.00Fixed manufacturing overhead ........................... $4.20Variable selling and administrative expense ....... $1.50Fixed selling and administrative expense ........... $2.40The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year. An order hasbeen received from a mail-order house for 15,000 units at a special price of $14.00 per unit. This orderwould not affect regular sales.Required:1. If the order is accepted, by how much will annual profits be increased or decreased? (The order willnot change the company’s total fixed costs.)2. Assume the company has 1,000 units of this…
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Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter Required: $ 60 1,500,000 4,500,000 9 12 10 6 500,000 units Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit 500,000 units 600,000 units

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